By Dr A S Durga Prasad Vice President ICAI

1. Role of Cost Accountants in The Companies Act 2013 By Dr A S Durga PrasadVice President ICAI

2. Cost Accountants and Companies Act 2013

3. Role of Cost Accountants “EXPERT” includes a cost accountant. Role in the Formation of the company for signing declaration of Form. Appointment as Internal Auditor where there is a huge scope for Cost Accountants Certification under Mergers and Acquisitions Scheme. The INTERIM ADMINISTRATOR OR THE COMPANY ADMINISTRATOR as per the Tribunal order.

4. Role of Cost Accountants Act as PROVISIONAL LIQUIDATOR OR COMPANY LIQUIDATOR PERSON ORDERED TO BE EXAMINED under section 300 may employ cost accountants or other professionals entitled to APPEAR BEFORE THE TRIBUNAL under section 432. A cost accountant with fifteen years of experience is ELIGIBLE TO BE APPOINTED AS A MEMBER OF THE TRIBUNAL, in addition to other prescribed qualification. Appear before the Appellate Tribunal

5. Role of Cost Accountants – as Cost Auditor As per clause 148 (2) audit of cost records of class of companies, shall be conducted in the manner specified in the order. As per clause 148 (3) audit shall be conducted by a Cost Accountant in practice who shall be appointed by the Board . Cost Auditing Standards made mandatory.

6. Service Sector - Challenges The Service sectorhas been brought in under the ambit of Cost Audit for the first time. Service Sector assumed greater importance after WTO has replaced the concept of GATT to GATIS encompassing vital service activities like Finance, Energy, Health, Education, etc. A system of Cost Consciousness needs to be created in these sectors to maintain efficiency, performance and proprietyin their operations to be competitive with larger players entering these sectors from developed countries with greater resources and better efficiency of operations. Service sector, suffers seriously, from availability of authenticated and reliable, activity-wise, input-output datawhich are important to eliminate waste and improve efficiency.

7. Service Sector - Challenges Institute is taking immediate action for: issuance of suitable publications in the form of Guidance Notes, Developing Cost Accounting Standards specifically for the service sector. Organsingprograms creating awareness among the service sector industry with regard to the maintenance of the Cost Records and its utility in different parts of the country

8. Opportunities - CMA Profession

9. Opportunities Study and arrive at true cost of delivering Health Services under CGHS, Primary Health care centres and Government Hospitals. Conducting Social Audit of various Social Sector Schemes by looking at Cost – Benefits involved Develop an appropriate costing model for primary, Secondary, Degree and Professional levels of education. Analyzing the Cost structure, suggesting proper accumulation and assignment of costs and arriving at appropriate price of the Utilities and Public Services. Study the Government Procurement Process and suggest measures for Cost efficient and Time effective Procurement System without impairing quality.

10. Opportunities Assisting in appropriate drafting of the various contracts from costing and pricing points of view. Working out the feasible Revenue Sharing model in PPP Projects. Evaluating various Government Schemes / Projects by linking Physical and Financial parameters. This will help in improving the transparency and accountability of all concerned. Monitoring the Operational Efficiency of PSUs through analysis of capacity, wastages, men-machine-material productivity and operational Cost structure. Assist the government organizations in moving towards and adopting Accrual Accounting concept so as to truly reflect the Operational Performance of the Organization.

11. Thank you